Advisers and multi-managers have welcomed Sanjeev Shah's appointment as the new manager of Fidelity Special Situations but his recent performance figures have raised concerns.
Shah will take full ownership of the fund on January 1 2008 after a transitional period when he will work with Bolton on the fund. The announcement ends months of uncertainty about Bolton’s replacement although Shah had always been one of the main names in the frame.
His appointment has pleased advisers who remember his track record on the UK Aggressive fund from October 2002 to August 2005 when he returned 77.77pc compared with his benchmark return of 49.73pc. However, on the European Aggressive fund, which he has managed from August 2005, Shah’s performance has been less impressive returning 32.93pc compared to 38.62pc for the sector.
Chelsea Financial Services, Hargreaves Lansdown and Whitechurch Securities are among those recommending clients keep their money in the fund.
Mark Dampier, head of research at Hargreaves Lansdown, said: “We are delighted that Fidelity has picked a known fund manager in Sanjeev Shah to manage the Special Situations fund after Anthony Bolton’s retirement. When managing the Fidelity Aggressive fund, his track record was excellent, although his record is more mixed in recent times.”
Jason Britton, co-fund Manager T. Bailey, commented: "The succession plans for Fidelity Special Situations have caused much debate and opinion over the last two years. The announcement of Sanjeev Shah as Anthony Bolton's successor brings the uncertainty to an end which will be a great relief to many investors and the fund management industry.”IFAonline
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